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The prices of gold and silver bounced back on
Wednesday after they had declined a day earlier. Their recent
rally coincided with the recovery of other commodities prices
such as oil. U.S durable goods report came out yesterday:
the report was disappointing as durable goods orders fell by
5.7%; core durable good declined by 1.4%. This report didn’t seem
to curb the rally of commodities and didn’t drag down equity
markets. Moreover, this news may have helped pull up precious
metals rates. Perhaps investors wait for tomorrow’s U.S GDP
report that could stir up the market again if there will be a
surprise. In the meantime, will gold and silver continue to trade
up? On today’s agenda: Flash GB GDP Q1 2013 and U.S. Jobless
Claims.

On Wednesday, the price of gold bounced back and rose by 1.05% to
$1,423; Silver also increased by 0.07% to $22.83. During the
month, gold declined by 10.74%; silver, by 19.30% - currently the
worst performing month for both metals in years.

The gold and silver futures volumes of trade have declined in the
past several days. They reached by Wednesday 153 thousand and 107
thousand for gold and silver, respectively. These numbers are
lower than the volume traded a couple of weeks back. If the
volume will pick up today, this could raise the odds of high
volatility in the prices of gold and silver. The chart below
presents the volume of trading gold and silver futures in the CME
during April.

St. Deviation of Gold and Silver

Despite the slowdown in the high volatility of precious metals
compared to previous week, the volatility of precious metals are
still higher than in previous months: The standard deviations of
gold and silver (daily percent changes) reached in April 2.64%
and 3.09%, respectively.

On Today's Agenda

Flash GB GDP Q1
2013: This report will present the first estimate of the
quarterly growth rate of the British economy for the first
quarter of 2013; during the fourth quarter the GB economy
contracted by 0.3% (Q-2-Q);

U.S.Jobless Claims Weekly
Report: in the previous report the jobless claims rose by 4k to reach
348k; this upcoming weekly report may affect the direction of U.S
dollar and consequently precious metals, Forex and stocks
markets;